Earnings call transcript Q2 2023

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Operator

Thank you for standing by ladies and gentlemen and welcome to the Costamare Inc. Conference Call on the Second Quarter 2023 Financial Results.

We have with us Mr. Gregory Zikos, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. presentation a a session. be will followed question-and-answer by There [Operator Instructions]. you I is that being advise recorded XXXX. conference XX, this must July today Friday,

contains X of to this presentation which a like you forward-looking the to forward-looking statements. the call moment number would take statements. Slide We read contains Please remind conference that,

pass to ahead, will your And sir. Mr. today, now I speaker the floor go Zikos. Please

Gregory Zikos

morning, and good ladies you and Thank gentlemen.

about the year, the generated $XX During million. second of quarter of the net company income

was liquidity the threat end book, As billion. been In although sector, quarter of a remain to order ship container $X levels. charter softening principal the market. however, remains The has market the at rates still healthy

basis, fleet own the grown side, fundamentals dry On have we view while bulk of the the trading spot our commitment dry to operating whose Having bulk platform a in XX has million continue long-term invested $XXX to to ships. a vessels we bulk platform, the dry trade a positively. on sector

Neptune of quarters. Maritime concluded transactions in pipeline coming the leasing over growing steadily are total in basis, been worth a extending has prudent million by on a having which the complemented healthy Regarding $XXX platform leasing,

$XX buyback our company's Finally, performance program common of undervalued we the both the prospects. heavily our considering belief proceeded have share bought and during that the highlighting with million strong and quarter share worth we share price is

can was $X.XX quarter was see income per Moving now per roughly million Adjusted $X.XX second to or the presentation. $XX or the million share. our slide around you Net X, share. $XX income Slide results. On for cents quarter net

at stands over liquidity $X Our million.

common share X.X see Since an Slide QX, beginning for million program. On repurchase worth. million $XX we the partnered you update on of can our approximately shares X,

X. Slide

agreements. vessels are already As of the vessels of majority fleet CBI index concerned, period XX with is running. been delivered we the far and being linked, XX chartering on those chartering have as have

$XX around has already through platform, lease our XX ships leasing and have million. sale financed NML Since Regarding invested we inception, transactions. by

Slide X.

to deals extension million cost. an improvement roughly financing Those on $XXX without coupled in with amounted leverage. increase Our arrangements of maturities fighting and were

We basis earnings more in having agreements driver XX into is market, release. entered than on last chartering continue to the our charter our sport

side, alternative with essentially ‘XX time ’XX, and fixed the remaining our $X.X of revenue On hundred a are while percent TEU-weighted billion are about fixed a contracted days XX% revenues strategy for years. our X.X duration for

one on be keep bulk dry agreed Slide and hand. bulk cash to dry acquire X, to partnered size with sold will vessels Both we have have vessels ships.

capital own In containerships have vessels, XX% with addition, we containerships concluded transactions agreed your a interest. we where another sell we while for have equity two to containerships

market to Slide X, been softening. at has the Moving containerships the

FFA in rates of the the recovery driver volatile and Although market for XXXX, while indicates healthy further of remainder in strengthening QX signs remain remains at levels, market QX.

Finally, a we record continue uninterrupted by division long support. boosted sponsor to track have strong

basis. the opportunities our On above significantly for the Slide healthy on company billion. at has X, liquidity to This over standing look grow the us liquidity gives to year, a increased ability $X

Slide remains Rate XX, Added Charter low levels. containership at healthy at market capacity to about Moving of the remaining levels X%. historically have

is market you order And bulk of market the drive see the at fleet. Slide spotted trends finally, in total forward can on recent the book XX, X.X%

Operator, and can now. we we questions. that, can presentation now we our take take conclude can you. With questions Thank

Operator

[Operator Instructions].

of go comes from the Nokta from Jefferies. ahead. line Omar question Mr. first The Please

Omar Nokta

Greg. Thank Good you. Hi, afternoon.

Gregory Zikos

Hi, Omar. morning. Good

Omar Nokta

the of and you've into shifted coming to profitability to container more CBI, over that also operationally. profits. the it's and wanted few business. in past Clearly, wanted the looks that here over see just midsize so Costamare soft capes couple you've of in how quarters terms with years are are in It have into has now on check obviously things the of kind on, been the Previously, eating bulk dry kind past going investments the like got sector's Just somewhat segments. of

In in building it quarter just the of And or fleet business that or three, bulk show, that costs ask million and is startup earning the about say million. XX. but Would the commercial release up simple? container $XX wanted bulk dry $XXX business dry just you the more trading that lost the to you Is CBI? performance just just is

Gregory Zikos

it's Yes, things. two

-- the term. the we long in dry First sector, regarding and our bulk for the our of all, participation are in there investment

So, this is company. long-term a commitment of the

regarding has in grown specifically zero CBI, As have I the those starting quite have also of XX last my operations stated delivered. six XX now ships ships started been the into from chartering, substantially charter commentary, company more within and think I and months, a

we I think, things. -- So, two

us a First, for we same time, day to a in without having need ships sometime company up the the we had amortize of to set full eating costs. allow order deliveries, operated which the from At are period. one lot

it's would I that, rollover and business. So, of mainly set up a new cost a the say

very last $XXX the company months. we has way, six the happy We grown are invested and have million with over the

time, are patient. At we same the

rate, it's in result Also, entity initiation will this I think at right right cost. now capitalize set whenever to especially upside I we now. mainly to the dry on be right the And the volatile in more and and So, think the environment, people, the that base. order the order that comes. We have are to quite market yielding. time need up, is set up experience bulk the allow that we the see But

Omar Nokta

startup mentioned XX-ship to or XXX? range that think, potentially in got within -- be ships aiming XX that in sort is Or does the you here XX terms do the of of XX in helpful. the number That's term? going the And you to near XX you've is Or house maybe to sometime. going giving case? fleet So media’s costs or that part now? it that look of that Okay, are maybe, you get Do thanks, just taken to place, you of a is Greg. the have then the

Gregory Zikos

depends It conditions. market on

meaningful have within as the a Our operator. and goal sector is size, to grow to that company an

to Now, lot whether considerations. ships commercial a of later, go we're or sooner of a to number bigger there's going also

We need we the equity, to look the we the but have grow, conditions. also at to have market capacity

So healthy most of needs think I on probably, growth growing would say rather we I to going than a whether and be But it's that, of be the step-by-step. when to a basis like are or not. question

growth cannot predict I I see. let's cannot predict simply So, very the market. because the

Omar Nokta

buyback. I one. final just Now maybe guess. then that's Clearly, a fair. tough one And question, announced That's the you

million price work. little paid you $X about stock quickly? that little to And that. to you is The there. we You And a a a roughly from attractive? share, can work still were $XX bit today million the put expect very remaining aggressive $XX to see Do above putting be up

Gregory Zikos

that of worth reason in the this of it's the in of record, looks do the consider the terms of last of over however, terms I shares terms million of in question, stock bought common regarding we you whether the profitability, first undervalued, Look, quarter. $XX and is the undervalued part look someone it, prospects, track stock terms those is NAV, in at

going predict that for tell generally and now back add the cannot prefer now. capacity plan there. also stock that made the is likely can and believe be what's at legal we that common this we level, it or the I But buying definitely stock you more undervalued I the sense. million of for $XX tell program to remaining reasons. our predict extended whether program cannot I and I is Now cannot you this

Omar Nokta

Okay. Thanks, That's clear. Greg. turn over. it I'll

Operator

The Ben go next Nolan question from comes Stifel. ahead. Mr. Please with

Unidentified Analyst

dry asset on down. Pranella you actually moment, thank It's and have for come I afternoon. ask wanted for container good at or the to Ben, my morning prices question. taking Good but about, both bulk

each still do historically buyer of Costamare the at each both seller as case, type? in a are Although But or elevated. see better you moment,

Gregory Zikos

asset where about mean quarters. level are Yes, to level and you a reflect but today's the especially they consensus they containers, come the be how down, not charter where not are to developing a values at next over rates, the going have right. charter reflect for rates I

being, for as, haven't couple not the last the buyers. are So, regarding any bought we over containerships, the of time container ships we And years.

asset because secondhand that new elevated. buildings and for new didn't orders were both And felt building also, put for we any we prices

although they are that, wait I But with see. and we levels come like agree way attractive can that, values down at the there asset you so we So, are vessels. not they buying still, normally

market, But for dry prices, Now It again, middle price bulk at you time actually couple bought regarding Capesize the correction a dry levels we haven't being, was age. asset ago. levels sense. ago. substantial two made bought bulk two of close seen felt a we we to our We years fleet of in the years as the saw,

see. and wait do there, So we

we So, have equity. the

cash of $X have billion. above available with We liquidity together slightly

commercial bank access have We to debt.

we the that the ability prices So, feel also when track judging do buy sense, from record, asset have make fast. and quite we execute to a

the it feel For here could makes sitting we some on we we there opportunistically, being, assets sense. and be case, and time buying case waiting a by are if

Operator

question-and-answer I his will Being Instructions]. This now for concludes the Mr. back session. floor remarks. questions. [Operator closing no further the pass to Zikos

Gregory Zikos

We you look thank call. you Thank for quarterly Costamare. speaking next interest again for during Thank our in, in forward dialing you you. to your and results with

Operator

does you participating. you. all Thank for conclude Thank our conference. That

now may disconnect. You

Costamare (CMRE) 28 Jul 232023 Q2 Earnings call transcript